DGP, Inc. is planning an expansion of its business operations internationally by adding a subsidiary (FDI)...

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DGP, Inc. is planning an expansion of its business operationsinternationally by adding a subsidiary (FDI) in Spain. The CFO hasapproached 3 investment banks—2 in the United States and 1 inEurope—to provide the firm with financial information regarding thecost of capital in their respective markets, and also in majorcapital markets globally.
Instructions
Explain what is meant by global sourcing ofcapital.
Explain what is meant by the terms systematic risk,unsystematic risk, and beta as they relate toinvestment in shares of public organizations.
According to Eiteman, Stonehill, and Moffett (2010),“Depository receipts (depository shares) are negotiablecertificates issued by a bank to represent the underlying shares ofstock, which are held in trust at a foreign custodian bank” (p.393). Define and contrast American Depository Receipts (ADRs,) andGlobal Depository Receipts (GDRs).
What is meant by the term cross-listing?

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Global Sourcing of Capital means exploring sources of business finance across the global ie cross border financing to encash the advantages of lower capital costs and ease of raising finance Systematic Risk is the inherent risk posed by the markets as a whole It is uncontrollable and can be further divided into three See Answer

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DGP, Inc. is planning an expansion of its business operationsinternationally by adding a subsidiary (FDI) in Spain. The CFO hasapproached 3 investment banks—2 in the United States and 1 inEurope—to provide the firm with financial information regarding thecost of capital in their respective markets, and also in majorcapital markets globally.InstructionsExplain what is meant by global sourcing ofcapital.Explain what is meant by the terms systematic risk,unsystematic risk, and beta as they relate toinvestment in shares of public organizations.According to Eiteman, Stonehill, and Moffett (2010),“Depository receipts (depository shares) are negotiablecertificates issued by a bank to represent the underlying shares ofstock, which are held in trust at a foreign custodian bank” (p.393). Define and contrast American Depository Receipts (ADRs,) andGlobal Depository Receipts (GDRs).What is meant by the term cross-listing?